Selling price is lower than buying price (currency exchange)

chocolate · Post by **chocolate** » Sat Jan 18, 2014 9:22 am

Hi,
I have noticed that selling price of most currencies are lower than buying price at currency exchange in Helsinki. I found it interesting because I think it should be other way around: it's how bank gets money for currency exchange. Can somebody explain for me? Or is that how they attract tourists?

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Upphew · Post by **Upphew** » Sat Jan 18, 2014 12:32 pm

chocolate wrote:Hi,
I have noticed that selling price of most currencies are lower than buying price at currency exchange in Helsinki. I found it interesting because I think it should be other way around: it's how bank gets money for currency exchange. Can somebody explain for me? Or is that how they attract tourists?

http://www.tavex.fi/?lang=eng
Danish Krone 7.7020 7.2220
If you have 7.7 Danish Krone, they buy them and give you one Euro. Then they will sell you 7.22 Krone, if you pay them the coin you just got.

betelgeuse · Post by **betelgeuse** » Sat Jan 18, 2014 12:36 pm

http://www.forex.fi

At least Forex seems to be behaving logically. I have a euro and want to buy USD. I use their sell rate of 0.7717 and get 1,30 USD. When I sell 1,30USD back using their buy rate of 0,7209 I get 0,94 EUR. Forex has made a profit. I could image an arbitrage in exchange rates, if there were big static fees and caps on amounts involved. Then exchange would still make money.

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